Major stock indexes nodded in between gains and losses earlier this week before the closing to a high while uncertainty regarding the outcome of a budget debacle in the White House pushed most of the global stock markets to a lower bid.
Dow Jones industrial average trade is at 12,127.82 within 40 points of a standing record of 12, 164.53 and its second-largest jump ever. It gained a total of 38 points (0.3 %). Gaining 0.45 % and 0.4 % correspondingly were the Nasdaq composite and S&P 500. China’s shares slid down due to the government’s actions to cool down existing high prices of housing.
Democrats and Republicans in the nation’s capital have failed to come up with a resolution in a way to roll back $85 billion worth of automatic spending cuts that finally took effect last week. There is presently a missing near-term deadline left hanging over the head of the fiscal policy makers that would compel them to agree with the rising federal budget liability cost and soaring deficit of entitlement programmes.
Even the IG Markets in Australia have deduced the seeming disagreement over the budget controversy as simply a political diversion that is ultimately causing investors to cash out and purchase back on the dips.
Just this week, the Dow ended with 35 points to end at 14,089.55 while Nasdaq climbed 9.55 points to 3169.74 and the S&P 500 gained another 2.52 points at 1,518.20. With the European stock markets ended in the week’s mixed closing, Britain’s FTSE 100 index closed down 0.5 % in 6,345.63. While Germany’s DAX 30 index finished with a closing of the 0.2 % decrease at 7,691.68 and France’s CAC-40 index finished 0.5 % in 3,709.76.
Stock markets in China were helplessly pulled down by property shares that cascaded China’s Cabinet to execute new measures to cool surging housing costs. The government said that it needs to raise a minimum down payment in areas where prices are rising quickly and split down on efforts to avoid limits on how many properties each bidder is entitled. The Shanghai Composite Index plummeted 3.7 % to 2,273.40.
Hong Kong’s Hang Seng went down 1.5 % to 22,537.81 with the rest of Southeast Asia tailing behind as well. Japan’s Nikkei 225 bucked the off-putting trend by rising 0.4 % to close at 11,652.29. Investors are in a lightened mood with the change of leadership of the Bank of Japan.
Benchmark oil for April delivery went down 0.8 % to $89.96 per barrel according to the electronic trade transactions on the New York Mercantile Exchange. The contract fell to just $1.37 at the closing trade at $90.68 per barrel.
In the currency sector, the euro was rather buoyant at $1.3018. While the dollar fell to 93.44 yen, a 0.2 % drop with the yield on the `0-year US Treasury is at 1.88 %.